The sum borrowed for mortgage purposes was at the highest level for the month of February since 2008, industry body the Council of Mortgage Lenders (CML) reported today.
Total gross mortgage lending in February was estimated at £15.2 billion, 6 per cent lower than January’s figure of £16.1 billion but 43 per cent higher than the £10.6 billion lent in February of last year.
Head of lending at Mortgage Advice Bureau, Brian Murphy, said the prospects of getting a mortgage are now much higher for borrowers.
“Although mortgage lending took a seasonal dip in February, it remains 43 per cent higher year-on-year which shows how the prospects of getting a mortgage have been transformed. Help to Buy is continuing to open up the market to those with smaller deposits, while consumer confidence and demand has flourished – firmly placing us on the road to recovery.
“The extension of the Help to Buy equity loan scheme should do even more to attract potential buyers to the property market. With high loan to value (LTV) products and equity loans becoming more accepted routes to the housing ladder, buyers are finding their chances of accessing mortgage finance greatly improved. Although rates are bound to rise eventually, the Bank of England has reassured consumers that they will only do so gradually and therefore will not have much impact on potential buyers.
“The challenge faced by developers is to overcome the housing shortage that threatens to undermine the property market’s recent success. Yesterday’s Budget leaves the construction industry in good shape to respond to this demand, and increased funding for self-build, custom build and new housing developments should go a long way in tackling the problem.”
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